Iridex reports decreased second quarter sales

MOUNTAIN VIEW, Calif. — Iridex Corp. reported second quarter 2006 sales of $8.7 million, down from $9.4 million in sales for the second quarter of 2005, according to a pres release.

However, sales for the first half of 2006 totaled $17.7 million, a slight increase from the $17.5 million reported for the same period of 2005. Net income for the quarter totaled $48,000 or $0.01 per share, compared with net income of $430,000 during the second quarter of 2005.

“Total revenues for the quarter were below our expectations primarily based on lower-than-expected sales in the domestic dermatology business and to a lesser extent on delays in finalizing sales transactions during the second quarter in our international ophthalmic equipment segment,” Barry G. Caldwell, Iridex president and CEO, said in the release. “We have already begun the work necessary to regain our momentum in the domestic dermatology segment, and all of the international ophthalmic equipment sales delayed during the second quarter have already been recorded in the third quarter.”

Despite reduced sales, sales for its U.S. direct ophthalmology business were up 12% for the quarter and over 18% the first half of the year. Year-to-date international ophthalmology sales also grew over 7% compared to the same period of 2005. U.S. direct ophthalmic sales of disposable probes grew 38%, and international probe sales increased 15% during the quarter, according to the release.